The abolition will apply for individuals seeking to purchase a first home worth up to £300,000. To assist individuals in London and other expensive areas, the first £300,000 of the price of a home valued at £500,000 will be exempt from stamp duty for first-time homebuyers.

In his Budget speech, the Chancellor stated that the abolition represents ‘a stamp duty cut for 95% of all first-time buyers who pay stamp duty’.

Mr Hammond also suggested that the abolition will ‘help 80% of first-time homebuyers to get onto the housing ladder’.

First-time homebuyers will be required to pay the normal rates of stamp duty on all amounts above £500,000.

Think tank the Institute of Public Policy Research (IPPR) did not welcome the abolition.

Commenting on the change, Tom Kibasi, Director of the IPPR, said: ‘Unaffordable house prices are the problem, not stamp duty. For most young people, the stamp duty cut will make little difference. But it will help the beneficiaries of the bank of mum and dad.’